Slide 1: Third-Quarter 2016 Results
HIGHER LEVEL PERFORMANCE Third - Quarter 2016 Results October 27, 2016 Exhibit 99.2
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements Statements in this presentation that are not historical facts are forward - looking statements, which involve risks and uncertaint ies that could cause actual events or results to differ materially from those expressed or implied by the statements. Important factors th
Slide 3: Delivered Strong Q3 and YTD Results; FY 2016 Guidance
3 • Sales of $174 million and $523 million, respectively • Net Income of $10 million and $29 million • Diluted Earnings per share from continuing operations (“EPS”) of $0.36 and $1.03 • Strong balance sheet – Cash of $51 million; debt of $105 million – Debt / Adjusted EBITDA from continuing Ops of 1
Slide 4: Driving Significant Operating Improvements
4 Driving Significant Operating Improvements Pleased with Our Progress x Delivering on our financial commitments x Growing faster than our markets x Hiring key talent to augment our strong management team x Rapidly responding in a dynamic South American macroeconomic environment x Reaffirmed 2016 fu
Slide 5: Q3 and YTD 2016 Key Financial Metrics
5 Q3 and YTD 2016 Key Financial Metrics Q3 2016 YTD 2016 (Dollars in Millions) Sales $0.27 $0.36 Q3 2015 Q3 2016 Operating Income and % Margin Earnings per Share $162 $174 Q3 2015 Q3 2016 $8.9 $11.8 5.5% 6.8% Q3 2015 Q3 2016 Sales $0.61 $1.03 YTD 2015 YTD 2016 Operating Income and % Margin Earnings
Slide 6: Lowering Cost at PST in Response to Market Demand
6 Management Team Quickly Responded and PST Returned to Positive Operating Results During the Quarter Situation Overview • PST was facing tremendous difficulties in 2015 and early 2016 – Dramatic recession in Brazil – Weak activity in the vehicle market – Increasing cost base due to unfavorable curr
Slide 7: Winning with Our Customers
7 Winning with Our Customers Sales Continue to Grow Faster than Our Underlying Markets New and Replacement Business • Total peak annual revenue awards of $48 million during the quarter – $27 million replacement business – $21 million new business awards • New business awards ( peak annual revenue) –
Slide 8: MirrorEye Update
8 Mirror Eye TM Update MIrrorEye TM Wil l Evolve into a Significant Growth Opportunity • Mirror Eye TM Benefits – Reduction/Elimination of blind spot – Improved aerodynamics – High resolution cameras – Superior image quality – Overtake warning – Expanded view with automatic panning – Power fold – Ni
Slide 9: Market Segments Driving Growth
9 Market Segments Driving Growth We are Focused on Growth Markets Intelligence 8% CAGR Stoneridge Sales Growth 2016 2017 2018 2019 2020 2015 Safety & Security 7% CAGR Emissions 16% CAGR Fuel Economy 5% CAGR Source: December 2015 IHS, 2015 LMCA, ACT Research, Company Data.
Slide 10: Relocation of Stoneridge Corporate Headquarters
10 Relocation of Stoneridge Corporate Headquarters On Schedule and on Budget to Be Complete by Year - End • State of the art facility in Novi, Michigan – Transition to be completed in 4 th quarter – Consolidate corporate functions and North American sales organization • New location will facilitate:
Slide 11: Q3 2016 Summary
11 Q3 2016 Summary Delivering on our commitments Quickly responding to our markets Winning with our customers Positioning our company for continued strong growth Building our talent Continue to Drive Shareholder Value Through Strong Operating Results, New Business Wins, Talent, and Focused M&A Oppor
Slide 12: Financial Update
HIGHER LEVEL PERFORMANCE Financial Update October 27, 2016
Slide 13: Significant Improvement in Key Financial Metrics
13 Significant Improvement in Key Financial Metrics (Dollars in Millions) All Key Operating Metrics Significantly Improved Year - Over - Year Q3 2015 Q3 2016 2016 vs. 2015 Sales $162.1 $173.8 Gross Profit Margin 27.9% 28.6% Operating Earnings $8.9 $11.8 Operating Margin 5.5% 6.8% EPS $0.27 $0.36 +7.
Slide 14: Sales by Segment – Q3 2016 vs. Q3 2015
14 Sales by Segment – Q3 2016 vs. Q3 2015 19.2% Growth in Control Devices Segment – Driven by Passenger Car / Light Truck Sales (Dollars in Millions) $87.0 $50.7 $24.3 $162.1 $103.7 $47.8 $22.3 $173.8 Control Devices Electronics PST (Brazil) Consolidated Stoneridge Q3 2015 Sales Q3 2016 Sales Q3 201
Slide 15: Diverse Sales Profile – Q3 2016
15 Diverse Sales Profile – Q3 2016 Diversified Sales Based on End Markets, Regions and Products (Dollars in Millions) PassCar / Light Truck 49% Commercial Vehicle 36% PST 11% Ag / Other 4% North America 62% Europe / Asia 25% South America 13% Control Devices 60% Electronics 27% PST 13% $174 Million
Slide 16: Adjusted Sales – Q3 2016 vs. Q3 2015
16 Adjusted Sales – Q3 2016 vs. Q3 2015 Currency Unfavorably Impacted Our Electronics Segment in Q3 and Benefitted PST (Dollars in Millions) $87.0 $50.7 $24.3 $162.1 $103.7 $47.8 $22.3 $173.8 Control Devices Electronics Segment PST Segment Consolidated Sales Q3 2015 Q3 2016 $87.0 $50.7 $24.3 $162.1
Slide 17: Continuing EPS – Q3 2016 vs. Q3 2015
17 Continuing EPS – Q3 2016 vs. Q3 2015 $0.09 Improvement in Q3 2016 EPS vs. Q3 2015 – 33% Year - over - Year Increase $0.27 $0.36 Q3 2015 Q3 2016 EPS Q3 2016 vs. 2015 EPS Y/Y Drivers * Includes currency impacts. SRI (ex. PST) PST (Brazil) Total SRI Volume * $0.13 ($0.02) $0.11 HQ Relocation (0.02)
Slide 18: Sales, Gross Profit, Op Income – Q3 2016 vs. Q3 2015
18 Sales, Gross Profit, Op Income – Q3 2016 vs. Q3 2015 3Q16 3Q15 3Q16 vs 3Q15 SRI excl PST PST PST PPA Total PST SRI SRI SRI USD [millions] except per share data Actual Actual Actual Actual Actual Actual $ Δ % Δ Net Sales 151.5 22.3 - 22.3 173.8 162.1 11.7 7.2% Total Direct Material 80.4 7.8 - 7.8
Slide 19: Sales by Segment – Q3 2016 vs. Q2 2016
19 Sales by Segment – Q3 2016 vs. Q2 2016 Q3 2016 Sales Lower than Q2 2016, Largely Driven by Lower North American OE Production (Dollars in Millions) $108.9 $57.8 $20.2 $186.9 $103.7 $47.8 $22.3 $173.8 Control Devices Electronics PST (Brazil) Consolidated Stoneridge Q2 2016 Sales Q3 2016 Sales Q2 2
Slide 20: Continuing EPS – Q3 2016 vs. Q2 2016
20 Continuing EPS – Q3 2016 vs. Q2 2016 Q3 2016 EPS $0.05 Lower than Q2 2016, Primarily Driven by Lower Volumes Which More than Offset Mix and Improvements in SG&A, Design & Development and Direct Labor $0.41 $0.36 Q2 2016 Q3 2016 EPS SRI (ex. PST) PST (Brazil) Total SRI Volume * ($0.15) $0.02 ($0.1
Slide 21: Debt / Net Debt Capital Structure
21 Debt / Net Debt Capital Structure Debt and Leverage Levels Significant De - risking of Balance Sheet in Recent Years – Debt / EBITDA of 1.6x Today vs. 4.1x in 2012 (Dollars in Millions) 9/30/16 U.S. Debt Revolver Capacity $300 Amount Drawn (87) Net Availability $213 Brazil Debt Gov’t Incentive De
Slide 22: 2016 Full-Year Guidance
22 2016 Full - Year Guidance Revising 2016 Full - Year Sales Guidance – Reaffirming All Other Key Metrics Prior Guidance * Updated Guidance * Sales Updated $705 - $715M $690 - $700M Gross Margin 26.0% - 28.5% 26.0% - 28.5% Operating Margin 6.0% - 7.3% 6.0% - 7.3% EPS / Adjusted EPS ** $1.25 - $1.40
Slide 23: Closing Thoughts
23 Continue to drive shareholder value x Deliver on our commitments x Execute growth opportunities (soot sensor, MirrorEye TM ) x Quickly respond to changing market conditions x Continue to generate operating leverage on growing revenue base x Grow faster than our respective markets x Strategic M&A
Slide 24: Appendix
HIGHER LEVEL PERFORMANCE Appendix October 27, 2016
Slide 25: PST Purchase Price Accounting Expense (Non Cash)
25 PST Purchase Price Accounting Expense (Non Cash) (millions) 1Q 2Q 3Q 4Q Full Year 2015 1Q16 2Q16 3Q16 COGS / Depreciation – Fixed Asset Write Up $0.2 $0.2 $0.1 $0.1 $0.6 $0.1 $0.1 $0.1 SGA / Amortized Intangibles $0.9 $0.9 $0.8 $0.7 $3.3 $0.7 $0.8 $1.2 TOTAL $1.1 $1.1 $0.9 $0.8 $3.9 $0.8 $0.9 $1.
Slide 26: Stoneridge
26 Stoneridge www.stoneridge.com